Custom-built Articles/Products having considerable
control over Quality.
Mass- Produced Products with less control over
Quality control Department in Factories.
TQM-based Production facility – enhancing the
Organization through Quality techniques to better
achieve organization’s goals-eg. Productivity and
Profitability with min.wastage.
ISO Quality Management Systems.
QUALITY IS ….the QUALIFIER!
Doing it right first time and all the time.
This boosts Customer satisfaction immensely
and increases efficiency of the Business
Clearing the bar (ie. Specification or Standard
stipulated) Excellence that is better than a
Quality - Definitions
Quality is excellence that is better than a
It is conformance to standards and
‘fitness of purpose’
ISO 9000:2000 definition of quality-
It is the degree to which a set of inherent
characteristics fulfills requirements.
Quality is ‘ fitness for use ‘ of the product –
Quality and customer
Quality is also defined as excellence in the
product or service that fulfills or exceeds the
expectations of the customer.
There are 9 dimensions of quality that may be
found in products that produce customer-
Though quality is an abstract perception,it has a
quantitative measure- Q= (P / E ) ,
where Q=quality, P= performance(as
measured by the Mfgr.), and E =
expectations( of the customer).
The 9 Dimensions of Quality
Response- of Dealer/ Mfgr. to
Aesthetics – of product
Reputation- of Mfgr./Dealer
MONOPOLIST markets Seller’s market
GLOBAL markets Buyer’s market
Market more competitive Customer-oriented market
Demand is defined by Users.
Quality management is a necessity for survival and
growth of the organization in a global environment.
TQM six basic Concepts
Management commitment to TQM
principles and methods & long term
Quality plans for the Organisation
Focus on customers – internal & external
Quality at all levels of the work force.
Continuous improvement of the
Treating suppliers as partners
Establish performance measures for the
Effects of poor Quality
Low customer satisfaction
Low productivity, sales & profit
Low morale of workforce
More re-work, material & labour costs
High inspection costs
Delay in shipping
High repair costs
Higher inventory costs
Greater waste of material
Benefits of Quality
Higher customer satisfaction
Better efficiency of operations
More productivity & profit
Better morale of work force
Less wastage costs
Less Inspection costs
More market share
Spread of happiness & prosperity
Better quality of life for all.
The Deming Philosophy
Create and publish the aims and purposes of the
Learn the new philosophy
Understand the purpose of inspection
Stop awarding business based on price alone.
Improve constantly and forever the System
Teach and institute leadership
The Deming Philosophy
Drive out fear,create trust,and create a climate
Optimize the efforts of teams,groups,and staff
Eliminate exhortations for the work force
Eliminate numerical quotas for the work force
Eliminate management by objectives
Remove barriers to pride of workmanship
Encourage education and self-improvement for
Take action to accomplish the transformation.
Vision statement – a short declaration of
what the organization hopes to be
Mission statement – a statement of
purpose –who we are,who are our
customers,what we do , and how we do it.
Quality policy – is a guide for everyone in
the organization ,how they should provide
products and services to the customers.
Good Quality – leads to more Productivity
Sales, Profits, and increased
Operational efficiency and min.
Bad Quality - results in less Productivity,
Sales , Profits and Efficiency -
with Losses amounting to 20% or more
of the Sales revenue generated .
Customer is the Boss or ’King’
Customer dictates the market trends and
Customer not only has needs to be supplied(
basic performance functions)
Also he ‘wants what he wants!’( additional
features satisfy him and influence his purchase
Hence the Suppliers and Manufacturers have to
closely follow at the heel of the customer.
What is customer satisfaction?
Is it due to Product quality?
Is it due to pricing?
Is it due to good customer service ?
Is it due to company reputation?
Is it something more?
User purchase perceptions-
( refer pgs.72 and 73, Besterfield)
Customer feedback has to be continuously
sought and monitored - not one-time only!( Pro-
active! Complaints are a reactive method of
finding out there is a problem)
Customer feedback can be relayed to Mfgr.
Performance comparison with competitors can
Customers needs can be identified
Relative priorities of quality can be obtained from
the horses’ mouth!
Areas for improvement can be noted.
Customer feedback methods
Comment cards enclosed with warranty card
when product is purchased.
Customer survey and questionnaire
Customer focus groups
e-mail, Internet newsgroups,discussion
Customers- Handle with care!
Employers don’t pay wages but it is the
customer who pays the wages!
So take good care of your customers.
Customer-care centres not just profit-centres!
The entire organization must in effect revolve
around the customer – whether the customer is
being well served and if he is really
pleased,contented and satisfied with the
service you have to offer.
Identify each market segment
Write down the requirements
Communicate the requirements
Organise physical spaces
(ii) Customer Care
Meet the customer’s expectations
Get the customer’s point of view
Deliver what is promised
Make the customer feel valued
Respond to all complaints
Over-respond to the customer
Provide a clean and comfortable customer reception
Optimize the trade-off between time and
Minimize the number of contact points
Provide pleasant,knowledgable and
Write documents in customer-friendly
(iv) Front-line people
Hire people who like people
Challenge them to develop better methods
Give them the authority to solve problems
Serve them as internal customers
Be sure they are adequately trained
Recognise and reward performance
Lead by example
Listen to the front-line people
Strive for continuous process improvement
(Pgs. 88-93 Besterfield)
Total Quality Management - Dale H.
Besterfield et al. ,Pearson education LPE
Total Quality Management -
R.S.Naagarazan and A.A Arivalagar, New
Age International Publishers.